Common use of Applicable Margins Clause in Contracts

Applicable Margins. Both the ABR Applicable Margin and the LIBOR Applicable Margin to be used in calculating the interest rate applicable to different Types of Advances shall vary from time to time in accordance with the higher of the then-applicable Moody's debt rating and S&P's debt rating, as the case may be, for the long-term unsecured debt of Chateau Parent. The Applicable Margins shall be adjusted effective on the next Business Day following any change in Chateau Parent's Moody's debt rating and/or S&P's debt rating, as the case may be. Borrower shall provide prompt notice to Administrative Agent of any rating change and promptly upon receipt of such notice Administrative Agent shall promptly notify the Lenders, but the determination of the Applicable Margin shall not be dependent on the giving of such notice. The applicable debt ratings and the Applicable Margins are set forth in the following tables: --------------------------------------------------------------------------------------- Pricing Grid For Period From Closing Through First 4 Months --------------------------------------------------------------------------------------- Rating: At least At least Less than S&P and ▇▇▇▇▇'▇ Baa2 or BBB Baa3 or BBB- Baa3 and BBB- ("Level I Status") but lower than Level I Status --------------------------------------------------------------------------------------- ABR Applicable Margin 20 40 65 (in basis points) --------------------------------------------------------------------------------------- LIBOR Applicable Margin 120 140 165 (in basis points) --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- Pricing Grid For Period From Beginning of Month 5 Through Maturity --------------------------------------------------------------------------------------- Rating: At least At least Less than S&P and ▇▇▇▇▇'▇ Baa2 or BBB Baa3 or BBB- Baa3 and BBB- ("Level I Status") but lower than Level I Status --------------------------------------------------------------------------------------- ABR Applicable Margin 50 75 100 (in basis points) --------------------------------------------------------------------------------------- LIBOR Applicable Margin 150 175 200 (in basis points) --------------------------------------------------------------------------------------- In the event that either S&P or ▇▇▇▇▇'▇ shall discontinue its ratings of the REIT industry or Chateau Parent, Chateau Parent shall seek a debt rating from a substitute rating agency reasonably satisfactory to the Administrative Agent and Chateau Parent (the "Substitute Rating Agency"). For the period from the date of such discontinuance until the first to occur of (i) the date Chateau Parent receives a debt rating from the Substitute Rating Agency or (ii) a date 180 days after such discontinuance, the single rating from S&P or ▇▇▇▇▇'▇, as the case may be, shall be used to determine the Applicable Margin. If the debt rating of Chateau Parent from the Substitute Rating Agency is not received within such 180 day period, or if both S&P and ▇▇▇▇▇'▇ shall discontinue their ratings of the REIT industry or Chateau Parent at a time when Chateau Parent has not secured a rating from a Substitute Rating Agency, the Applicable Margin to be used for the calculation of interest on Advances hereunder shall be the highest Applicable Margin for each Type. If a rating agency downgrade or discontinuance results in an increase in the Applicable Margins and if such rating downgrade or discontinuance is reversed and the Applicable Margins are restored within ninety (90) days thereafter, at Borrower's request, Borrower shall receive a credit against interest next due the Lenders equal to interest accrued from time to time during such period of downgrade or discontinuance on the Advances at the differential between such Applicable Margins. If a rating agency upgrade results in a decrease in the Applicable Margins and if such rating upgrade is reversed and the Applicable Margins are restored within ninety (90) days thereafter, Borrower shall pay at the time of the next interest payment (in addition to the interest then due) an amount equal to interest accrued from time to time during such period of upgrade on the Advances at the differential between such Applicable Margins.

Applicable Margins. Both Each of the ABR Applicable Margin and the LIBOR Applicable Margin to be used in calculating the interest rate applicable to different Types of Advances Borrowings and the Facility Fee Rate to be used in calculating the Facility Fee shall vary from time to time in accordance with the higher of the then-Borrower's then applicable Moody's ▇▇▇▇▇'▇ debt rating and S&P's debt ratingrating unless one of such two ratings is more than one rating category lower than the other, as in which case the case may beApplicable Margins and the Facility Fee Rate shall be based on the rating category which is in between such two ratings (or if there is more than one rating category in between the two ratings, for the long-term unsecured debt of Chateau Parenthigher rating category in between the two ratings shall apply). The Applicable Margins shall be adjusted effective on the next Business Day following any change in Chateau ParentBorrower's Moody's ▇▇▇▇▇'▇ debt rating and/or S&P's debt rating, as the case may be. Borrower shall provide prompt notice to Administrative Agent of any rating change and promptly upon receipt of such notice Administrative Agent shall promptly notify the Lenders, but the determination of the Applicable Margin shall not be dependent on the giving of such notice. The applicable debt ratings and ratings, the Applicable Margins and Facility Fee Rate are set forth in the following tablestable: --------------------------------------------------------------------------------------- Pricing Grid For Period From Closing Through First 4 Months --------------------------------------------------------------------------------------- Rating: At least At least Less than LIBOR ABR APPLICABLE APPLICABLE FACILITY S&P and RATING ▇▇▇▇▇'▇ Baa2 RATING MARGIN MARGIN FEE RATE -------------- -------------- ---------- ---------- -------- A- or BBB Baa3 higher A3 or BBB- Baa3 and BBB- ("Level I Status") but lower than Level I Status --------------------------------------------------------------------------------------- ABR Applicable Margin 20 40 65 (in basis points) --------------------------------------------------------------------------------------- LIBOR Applicable Margin 120 140 165 (in basis points) --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- Pricing Grid For Period From Beginning of Month 5 Through Maturity --------------------------------------------------------------------------------------- Rating: At least At least Less than higher 0.375% -0.125% 0.125% BBB+ Baa1 0.425% -0.125% 0.15% ▇▇▇▇▇ ▇▇▇ APPLICABLE APPLICABLE FACILITY S&P and RATING ▇▇▇▇▇'▇ RATING MARGIN MARGIN FEE RATE -------------- -------------- ---------- ---------- -------- BBB Baa2 or BBB Baa3 or 0.60% -0.125% 0.15% BBB- Baa3 and 0.75% -0.125% 0.175% Less than BBB- ("Level I Status") but lower Less than Level I Status --------------------------------------------------------------------------------------- ABR Applicable Margin 50 75 100 (in basis points) --------------------------------------------------------------------------------------- LIBOR Applicable Margin 150 175 200 (in basis points) --------------------------------------------------------------------------------------- Baa3 1.00% 0.125% 0.25% In the event that either S&P or ▇▇▇▇▇'▇ shall discontinue its their ratings of the REIT industry or Chateau Parentthe Borrower, Chateau Parent shall the Borrower may seek a debt rating from a another substitute rating agency reasonably satisfactory to the Administrative Agent and Chateau Parent (the "Substitute Rating Agency")Borrower. For the period from the date of such discontinuance until the first to occur of (i) the date Chateau Parent the Borrower receives a debt rating from the Substitute Rating Agency such new rating agency or (ii) a date 180 days after such discontinuance, the single rating from S&P or ▇▇▇▇▇'▇, as the case may be, shall be used to determine the Applicable MarginMargin and the Facility Fee Rate. If the debt rating of Chateau Parent the Borrower from the Substitute Rating Agency such new rating agency is not received within such 180 day period, or if both S&P and ▇▇▇▇▇'▇ shall discontinue their ratings of the REIT industry or Chateau Parent at a time when Chateau Parent has not secured a rating from a Substitute Rating Agencythe Borrower, the Applicable Margin to be used for the calculation of interest on Advances Borrowings hereunder shall be the highest Applicable Margin for each TypeType and the Facility Fee to be used for the calculation of the Facility Fee shall be the highest rate shown above. If a rating agency downgrade or discontinuance results in an increase in the ABR Applicable Margins Margin or the LIBOR Applicable Margin or in the Facility Fee Rate and if such rating downgrade or discontinuance increase is reversed and the affected Applicable Margins are Margin or Facility Fee Rate is restored within ninety (90) days thereafter, at Borrower's request, Borrower shall receive a credit against interest next due the Lenders equal to (i) interest accrued at the differential between such Applicable Margins plus (ii) the differential in the Facility Fees accruing from time to time during such period of downgrade or discontinuance on the Advances at the differential between such Applicable Marginsdiscontinuance. If a rating agency upgrade results in a decrease in the ABR Applicable Margins Margin or the LIBOR Applicable Margin or in the Facility Fee Rate and if such rating upgrade is reversed and the affected Applicable Margins are Margin or Facility Fee Rate is restored within ninety (90) days thereafter, Borrower shall be required to pay at an amount to the time of the next interest payment (in addition Lenders equal to the interest then due) an amount equal to interest accrued from time to time differential on the Borrowings and the differential on the Facility Fees during such period of upgrade on the Advances at the differential between such Applicable Marginsupgrade.

Applicable Margins. Both The term "Applicable Margin" (herein so called) shall mean: (A) during the ABR period commencing on the Closing Date and ending on but not including the first Adjustment Date (as defined below), 1.00% per annum and (B) during each period, from and including one Adjustment Date to but excluding the next Adjustment Date (each a "Calculation Period"), the percent per annum set forth in the Rating Table below in this subsection 2.4(b) under the heading "Applicable Margin" and opposite the applicable Implied Unsecured Senior Debt Rating (as determined in accordance with this subsection 2.4(b)) in existence as of the first day of the applicable Calculation Period. The following is the Rating Table referred to above in this subsection 2.4(b): RATING TABLE ===================================================================== Implied Unsecured Senior Debt Rating Applicable Margin and the LIBOR ------------------------------------ ----------------- A or higher by S&P or Fitch A2 or higher by Moody's 0.50% --------------------------------------------------------------------- A- by S&P or Fitch A3 by Moody's 0.75% --------------------------------------------------------------------- BBB+ by S&P or Fitch Baa1 by Moody's 1.00% --------------------------------------------------------------------- BBB by S&P or Fitch Baa2 by Moody's 1.20% --------------------------------------------------------------------- BBB- by S&P or Fitch Baa3 by Moody's 1.40% --------------------------------------------------------------------- less than BBB- by S&P or Fitch less than Baa3 by Moody's. 1.50% ===================================================================== The Applicable Margin to (for Interest Periods commencing after the applicable Adjustment Date, as defined below) shall automatically be used in calculating the interest rate applicable to different Types of Advances shall vary from time to time adjusted in accordance with the higher appropriate Implied Unsecured Senior Debt Rating then established, such automatic adjustment (a) to take effect as of the then-applicable Moody's debt first Business Day after the Borrower has notified the Banks of the effective date of the establishment of, or an upgrade in a rating and S&P's debt rating, as used to determine the Implied Unsecured Senior Debt Rating or (b) in the case may beof a downgrade in the ratings used to determine the Implied Unsecured Senior Debt Rating, for effective as of the long-term unsecured debt of Chateau Parent. The Applicable Margins shall be adjusted effective on the next first Business Day following any change in Chateau Parent's Moody's debt rating and/or S&P's debt ratingafter the effective date of the downgrade. If the Implied Unsecured Senior Debt Rating can not be determined, as the case may be. Borrower shall provide prompt notice to Administrative Agent of any rating change and promptly upon receipt of such notice Administrative Agent shall promptly notify the Lenders, but the determination of then the Applicable Margin shall not automatically be dependent adjusted to 1.50% per annum, such automatic adjustment (a) to take effect as of the first day on which the giving Implied Unsecured Senior Debt Rating can no longer be determined and (b) to remain in effect until subsequently adjusted in accordance herewith upon the establishment of such noticea new Implied Unsecured Senior Debt Rating. The applicable debt ratings and the Applicable Margins are set forth As used in this subsection 2.4(b), the following tables: --------------------------------------------------------------------------------------- Pricing Grid For Period From Closing Through First 4 Months --------------------------------------------------------------------------------------- Rating: At least At least Less than S&P and ▇▇▇▇▇'▇ Baa2 or BBB Baa3 or BBB- Baa3 and BBB- ("Level I Status") but lower than Level I Status --------------------------------------------------------------------------------------- ABR Applicable Margin 20 40 65 (in basis points) --------------------------------------------------------------------------------------- LIBOR Applicable Margin 120 140 165 (in basis points) --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- Pricing Grid For Period From Beginning of Month 5 Through Maturity --------------------------------------------------------------------------------------- Rating: At least At least Less than S&P and ▇▇▇▇▇'▇ Baa2 or BBB Baa3 or BBB- Baa3 and BBB- ("Level I Status") but lower than Level I Status --------------------------------------------------------------------------------------- ABR Applicable Margin 50 75 100 (in basis points) --------------------------------------------------------------------------------------- LIBOR Applicable Margin 150 175 200 (in basis points) --------------------------------------------------------------------------------------- In terms have the event that either S&P or ▇▇▇▇▇'▇ shall discontinue its ratings of the REIT industry or Chateau Parent, Chateau Parent shall seek a debt rating from a substitute rating agency reasonably satisfactory to the Administrative Agent and Chateau Parent (the "Substitute Rating Agency"). For the period from the date of such discontinuance until the first to occur of (i) the date Chateau Parent receives a debt rating from the Substitute Rating Agency or (ii) a date 180 days after such discontinuance, the single rating from S&P or ▇▇▇▇▇'▇, as the case may be, shall be used to determine the Applicable Margin. If the debt rating of Chateau Parent from the Substitute Rating Agency is not received within such 180 day period, or if both S&P and ▇▇▇▇▇'▇ shall discontinue their ratings of the REIT industry or Chateau Parent at a time when Chateau Parent has not secured a rating from a Substitute Rating Agency, the Applicable Margin to be used for the calculation of interest on Advances hereunder shall be the highest Applicable Margin for each Type. If a rating agency downgrade or discontinuance results in an increase in the Applicable Margins and if such rating downgrade or discontinuance is reversed and the Applicable Margins are restored within ninety (90) days thereafter, at Borrower's request, Borrower shall receive a credit against interest next due the Lenders equal to interest accrued from time to time during such period of downgrade or discontinuance on the Advances at the differential between such Applicable Margins. If a rating agency upgrade results in a decrease in the Applicable Margins and if such rating upgrade is reversed and the Applicable Margins are restored within ninety (90) days thereafter, Borrower shall pay at the time of the next interest payment (in addition to the interest then due) an amount equal to interest accrued from time to time during such period of upgrade on the Advances at the differential between such Applicable Margins.following meanings:

Applicable Margins. Both Each of the ABR Applicable Margin and the LIBOR Applicable Margin to be used in calculating the interest rate applicable to different Types of Advances and the Facility Fee Rate to be used in calculating the Facility Fee shall vary from time to time in accordance with the higher of the then-Borrower's then applicable Moody's debt rating and S&P's debt ratingrating unless one of such two ratin▇▇ ▇▇ ▇ore than one rating category lower than the other, as in which case the case may be, for average of the long-term unsecured debt two different Applicable Margins and the average of Chateau Parentthe two different Facility Fee Rates shall be used. The Applicable Margins shall be adjusted effective on the next Business Day following any change in Chateau ParentBorrower's Moody's debt rating and/or S&P's debt rating, as the case may be. Borrower shall provide prompt notice to Administrative Agent of any rating change and promptly upon receipt of such notice Administrative Agent shall promptly notify the LendersThe ▇▇▇▇▇▇▇ble debt ratings, but the determination of the Applicable Margin shall not be dependent on the giving of such notice. The applicable debt ratings and the Applicable Margins and Facility Fee Rate are set forth in the following tablestable: --------------------------------------------------------------------------------------- Pricing Grid For Period From Closing Through First 4 Months --------------------------------------------------------------------------------------- Rating: At least At least -------------------------------------------------------------------------------- LIBOR ABR APPLICABLE APPLICABLE FACILITY S&P RATING MOODY'S RATING MARGIN MARGIN FEE RATE -------------------------------------------------------------------------------- A- or higher A3 or higher 0.75% 0.00% 0.15% -------------------------------------------------------------------------------- BBB+ Baa1 0.90% 0.00% 0.15% -------------------------------------------------------------------------------- BBB Baa2 1.00% 0.00% 0.20% -------------------------------------------------------------------------------- BBB- Baa3 1.15% 0.15% 0.20% -------------------------------------------------------------------------------- Less than S&P and ▇▇▇▇▇'▇ Baa2 or BBB Baa3 or BBB- Baa3 and BBB- ("Level I Status") but lower than Level I Status --------------------------------------------------------------------------------------- ABR Applicable Margin 20 40 65 (in basis points) --------------------------------------------------------------------------------------- LIBOR Applicable Margin 120 140 165 (in basis points) --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- Pricing Grid For Period From Beginning of Month 5 Through Maturity --------------------------------------------------------------------------------------- Rating: At least At least Less than S&P and ▇▇▇▇▇'▇ Baa2 or BBB Baa3 or BBB- Baa3 and BBB- ("Level I Status") but lower than Level I Status --------------------------------------------------------------------------------------- ABR Applicable Margin 50 75 100 (in basis points) --------------------------------------------------------------------------------------- LIBOR Applicable Margin 150 175 200 (in basis points) --------------------------------------------------------------------------------------- 1.50% 0.50% 0.25% -------------------------------------------------------------------------------- In the event that either S&P or ▇▇▇▇▇'▇ Moody's shall discontinue its their ratings of the REIT industry or Chateau Parentthe Bo▇▇▇▇▇▇, Chateau Parent shall the Borrower may seek a debt rating from a another substitute rating agency reasonably satisfactory to the Administrative Agent and Chateau Parent (the "Substitute Rating Agency")Borrower. For the period from the date of such discontinuance until the first to occur of (i) the date Chateau Parent the Borrower receives a debt rating from the Substitute Rating Agency such new rating agency or (ii) a date 180 days after such discontinuance, the single rating from S&P or ▇▇▇▇▇'▇Moody's, as the case may be, shall be used to determine the Applicable Margin▇▇▇▇▇▇ and the Facility Fee Rate. If the debt rating of Chateau Parent the Borrower from the Substitute Rating Agency such new rating agency is not received within such 180 day period, or if both S&P and ▇▇▇▇▇'▇ Moody's shall discontinue their ratings of the REIT industry or Chateau Parent at a time when Chateau Parent has not secured a rating from a Substitute Rating Agencythe Bo▇▇▇▇▇▇, the Applicable Margin to be used for the calculation of interest on Advances hereunder shall be the highest Applicable Margin for each TypeType and the Facility Fee to be used for the calculation of the Facility Fee shall be the highest rate shown above. If a rating agency downgrade or discontinuance results in an increase in the ABR Applicable Margins Margin or the LIBOR Applicable Margin or in the Facility Fee Rate and if such rating downgrade or discontinuance increase is reversed and the affected Applicable Margins are Margin or Facility Fee Rate is restored within ninety (90) days thereafter, at Borrower's request, Borrower shall receive a credit against interest next due the Lenders equal to (i) interest accrued at the differential between such Applicable Margins plus (ii) the differential in the Facility Fees accruing from time to time during such period of downgrade or discontinuance on the Advances at the differential between such Applicable Marginsdiscontinuance. If a rating agency upgrade results in a decrease in the ABR Applicable Margins Margin or the LIBOR Applicable Margin or in the Facility Fee Rate and if such rating upgrade is reversed and the affected Applicable Margins are Margin or Facility Fee Rate is restored within ninety (90) days thereafter, Borrower shall be required to pay at an amount to the time of the next interest payment (in addition Lenders equal to the interest then due) an amount equal to interest accrued from time to time differential on the Advances and the differential on the Facility Fees during such period of upgrade on the Advances at the differential between such Applicable Marginsupgrade.

Applicable Margins. Both Each of the ABR Applicable Margin and the LIBOR Applicable Margin to be used in calculating the interest rate applicable to different Types of Advances and the Facility Fee Rate to be used in calculating the Facility Fee shall vary from time to time in accordance with the higher of the then-Borrower's then applicable Moody's debt Mood▇'▇ ▇▇▇t rating and S&P's debt ratingrating unless one of such two ratings is more than one rating category lower than the other, as in which case the case may be, for average of the long-term unsecured debt two different Applicable Margins and the average of Chateau Parentthe two different Facility Fee Rates shall be used. The Applicable Margins shall be adjusted effective on the next Business Day following any change in Chateau ParentBorrower's Moody's debt Mood▇'▇ ▇▇▇t rating and/or S&P's debt rating, as the case may be. Borrower shall provide prompt notice to Administrative Agent of any rating change and promptly upon receipt of such notice Administrative Agent shall promptly notify the Lenders, but the determination of the Applicable Margin shall not be dependent on the giving of such notice. The applicable debt ratings and ratings, the Applicable Margins and Facility Fee Rate are set forth in the following tablestable: --------------------------------------------------------------------------------------- Pricing Grid For Period From Closing Through First 4 Months --------------------------------------------------------------------------------------- Rating: At least At least Less than =================================================================================================================== LIBOR ABR APPLICABLE APPLICABLE FACILITY S&P and RATING MOOD▇'▇ ▇▇▇▇▇'▇ ING MARGIN MARGIN FEE RATE ------------------------------------------------------------------------------------------------------------------- A- or higher A3 or higher 0.90% 0.00% 0.15% ------------------------------------------------------------------------------------------------------------------- BBB+ Baa1 0.95% 0.00% 0.20% ------------------------------------------------------------------------------------------------------------------- BBB Baa2 or BBB Baa3 or 1.10% 0.10% 0.20% ------------------------------------------------------------------------------------------------------------------- BBB- Baa3 and BBB- ("Level I Status") but lower than Level I Status --------------------------------------------------------------------------------------- ABR Applicable Margin 20 40 65 (in basis points) --------------------------------------------------------------------------------------- LIBOR Applicable Margin 120 140 165 (in basis points) --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- Pricing Grid For Period From Beginning of Month 5 Through Maturity --------------------------------------------------------------------------------------- Rating: At least At least 1.20% 0.20% 0.25% ------------------------------------------------------------------------------------------------------------------- Less than S&P and ▇▇▇▇▇'▇ Baa2 or BBB BBB- Less than Baa3 or BBB- Baa3 and BBB- ("Level I Status") but lower than Level I Status --------------------------------------------------------------------------------------- ABR Applicable Margin 50 75 100 (in basis points) --------------------------------------------------------------------------------------- LIBOR Applicable Margin 150 175 200 (in basis points) --------------------------------------------------------------------------------------- 1.50% 0.50% 0.30% =================================================================================================================== In the event that either S&P or Mood▇'▇ ▇▇▇▇▇'▇ shall ll discontinue its their ratings of the REIT industry or Chateau Parentthe Borrower, Chateau Parent shall the Borrower may seek a debt rating from a another substitute rating agency reasonably satisfactory to the Administrative Agent and Chateau Parent (the "Substitute Rating Agency")Borrower. For the period from the date of such discontinuance until the first to occur of (i) the date Chateau Parent the Borrower receives a debt rating from the Substitute Rating Agency such new rating agency or (ii) a date 180 days after such discontinuance, the single rating from S&P or ▇▇▇▇Mood▇'▇, as ▇▇ the case may be, shall be used to determine the Applicable MarginMargin and the Facility Fee Rate. If the debt rating of Chateau Parent the Borrower from the Substitute Rating Agency such new rating agency is not received within such 180 day period, or if both S&P and Mood▇'▇ ▇▇▇▇▇'▇ shall ll discontinue their ratings of the REIT industry or Chateau Parent at a time when Chateau Parent has not secured a rating from a Substitute Rating Agencythe Borrower, the Applicable Margin to be used for the calculation of interest on Advances hereunder shall be the highest Applicable Margin for each TypeType and the Facility Fee to be used for the calculation of the Facility Fee shall be the highest rate shown above. If a rating agency downgrade or discontinuance results in an increase in the ABR Applicable Margins Margin or the LIBOR Applicable Margin or in the Facility Fee Rate and if such rating downgrade or discontinuance increase is reversed and the affected Applicable Margins are Margin or Facility Fee Rate is restored within ninety (90) days thereafter, at Borrower's request, Borrower shall receive a credit against interest next due the Lenders equal to (i) interest accrued at the differential between such Applicable Margins plus (ii) the differential in the Facility Fees accruing from time to time during such period of downgrade or discontinuance on the Advances at the differential between such Applicable Marginsdiscontinuance. If a rating agency upgrade results in a decrease in the ABR Applicable Margins Margin or the LIBOR Applicable Margin or in the Facility Fee Rate and if such rating upgrade is reversed and the affected Applicable Margins are Margin or Facility Fee Rate is restored within ninety (90) days thereafter, Borrower shall be required to pay at an amount to the time of the next interest payment (in addition Lenders equal to the interest then due) an amount equal to interest accrued from time to time differential on the Advances and the differential on the Facility Fees during such period of upgrade on the Advances at the differential between such Applicable Marginsupgrade.

Applicable Margins. Both the ABR The Applicable Swing Line Margin, ------------------ Applicable Index Margin, Applicable LIBOR Margin and Applicable L/C Margin will be adjusted (up or down) quarterly based on Ultimate Parent's consolidated financial performance for the LIBOR Applicable Margin to be used in calculating the interest rate applicable to different Types of Advances shall vary from time to time trailing four quarters as evidenced by its quarterly consolidated Financial Statements in accordance with the higher following grid: ---------------------------------------------------------------------------------------------------------- IF EBIT/Cash Applicable Swing Applicable Index Applicable LIBOR Applicable L/C ------------ ---------------- ---------------- ---------------- -------------- Interest Coverage Line Margin is: Margin is: Margin is: Margin is: ----------------- --------------- ---------- ---------- ---------- is: --- ---------------------------------------------------------------------------------------------------------- less than 2.0 2.25% 0.50% 2.25% 1.25% --------------------------------------------------------------------------------------------------------- 2.0 up to but not 2.00% 0.25% 2.00% 1.25% including 3.0 --------------------------------------------------------------------------------------------------------- 3.0 up to but not 1.75% 0.25% 1.75% 1.00% including 4.0 --------------------------------------------------------------------------------------------------------- 4.0 up to but not 1.50% 0.0% 1.50% 0.75% including 5.0 --------------------------------------------------------------------------------------------------------- 5.0 or more 1.25% 0.0% 1.25% 0.75% --------------------------------------------------------------------------------------------------------- The Applicable Swing Line Margin, Applicable Index Margin, Applicable LIBOR Margin and Applicable L/C Margin will be 1.50%, 0.0%, 1.50% and 0.75%, respectively, as of the then-applicable MoodyClosing Date and will first be subject to adjustment prospectively on the first day of the calendar month that is more then five (5) days following delivery to Lenders of Ultimate Parent's debt rating and S&P's debt rating, as the case may be, quarterly consolidated Financial Statements for the long-term unsecured debt of Chateau ParentFiscal Quarter ending July 31, 1999. The After July 31, 1999, adjustments in the Applicable Margins Swing Line Margin, Applicable Index Margin, Applicable LIBOR Margin and Applicable L/C Margin shall be adjusted effective prospective only and shall be based on the next Business Day following any change in Chateau Ultimate Parent's Moody's debt rating and/or S&P's debt rating, consolidated financial performance for the trailing four quarters as the case may be. Borrower shall provide prompt notice to Administrative Agent of any rating change and promptly upon receipt of such notice Administrative Agent shall promptly notify the Lenders, but the determination of the Applicable Margin shall not be dependent on last day of each Fiscal Quarter as evidenced by Ultimate Parent's unaudited consolidated Financial Statements for the giving first three Fiscal Quarters of such noticeeach Fiscal Year and Ultimate Parent's audited consolidated Financial Statements for each Fiscal Year. The applicable debt ratings and the Applicable Margins are set forth Each increase or decrease in the following tables: --------------------------------------------------------------------------------------- Pricing Grid For Period From Closing Through First 4 Months --------------------------------------------------------------------------------------- Rating: At least At least Less than S&P and ▇▇▇▇▇'▇ Baa2 or BBB Baa3 or BBB- Baa3 and BBB- ("Level I Status") but lower than Level I Status --------------------------------------------------------------------------------------- ABR Applicable Margin 20 40 65 (in basis points) --------------------------------------------------------------------------------------- LIBOR Applicable Margin 120 140 165 (in basis points) --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- Pricing Grid For Period From Beginning of Month 5 Through Maturity --------------------------------------------------------------------------------------- Rating: At least At least Less than S&P and ▇▇▇▇▇'▇ Baa2 or BBB Baa3 or BBB- Baa3 and BBB- ("Level I Status") but lower than Level I Status --------------------------------------------------------------------------------------- ABR Applicable Margin 50 75 100 (in basis points) --------------------------------------------------------------------------------------- LIBOR Applicable Margin 150 175 200 (in basis points) --------------------------------------------------------------------------------------- In the event that either S&P or ▇▇▇▇▇'▇ above-referenced margins shall discontinue its ratings of the REIT industry or Chateau Parent, Chateau Parent shall seek a debt rating from a substitute rating agency reasonably satisfactory to the Administrative Agent and Chateau Parent (the "Substitute Rating Agency"). For the period from the date of such discontinuance until the first to occur of become effective starting (i) in the date Chateau Parent receives a debt rating from case of the Substitute Rating Agency or Swing Line Loan, Index Rate Loans and Letter of Credit Fees on the first day of the first calendar month commencing at least five (5) days after delivery of the applicable Financial Statements and (ii) a date 180 days after such discontinuance, the single rating from S&P or ▇▇▇▇▇'▇, as in the case may be, shall be used to determine of LIBOR Loans on the Applicable Margin. If the debt rating first day of Chateau Parent from the Substitute Rating Agency is not received within such 180 day period, or if both S&P and ▇▇▇▇▇'▇ shall discontinue their ratings each LIBOR Period commencing after delivery of the REIT industry or Chateau Parent at a time when Chateau Parent has not secured a rating from a Substitute Rating Agency, the Applicable Margin to be used for the calculation of interest on Advances hereunder shall be the highest Applicable Margin for each Type. If a rating agency downgrade or discontinuance results in an increase in the Applicable Margins and if such rating downgrade or discontinuance is reversed and the Applicable Margins are restored within ninety (90) days thereafter, at Borrower's request, Borrower shall receive a credit against interest next due the Lenders equal to interest accrued from time to time during such period of downgrade or discontinuance on the Advances at the differential between such Applicable Margins. If a rating agency upgrade results in a decrease in the Applicable Margins and if such rating upgrade is reversed and the Applicable Margins are restored within ninety (90) days thereafter, Borrower shall pay at the time of the next interest payment (in addition to the interest then due) an amount equal to interest accrued from time to time during such period of upgrade on the Advances at the differential between such Applicable Marginsapplicable Financial Statements.

Applicable Margins. Both On the ABR Closing Date, the Applicable Margin shall be determined using Tier I of the performance grid below until June 30, 1998. Thereafter, the Base Rate Applicable Margin and the LIBOR Applicable Margin to be used in calculating the interest rate applicable to different Types of Advances shall vary from time to time in accordance with the higher of the then-applicable Moody's debt rating and S&P's debt rating, as the case may be, for the long-term unsecured debt of Chateau Parent. The Applicable Margins shall be adjusted effective on the next Business Day following any change in Chateau Parent's Moody's debt rating and/or S&P's debt ratingfirst day of each calendar quarter, beginning July 1, 1998, and on each October 1, January 1, April 1, and July 1, thereafter, based on the ratio of Consolidated Funded Debt plus Indebtedness for Borrowed Money arising under the Agreement for Inventory Financing as of the end of the quarter ending on March 31, 1998, and on each June 30, September 30, December 31, and March 31, thereafter, to Consolidated EBITDA for the most recent preceding four (4) fiscal quarters, including the fiscal quarter ending on the date of determination. To the extent that, as of an adjustment date, Borrower has not provided to Agent information necessary to apply the case may be. Borrower performance grid, interest shall provide prompt notice to Administrative Agent of any rating change and promptly be payable retroactively upon receipt of such notice Administrative Agent information and calculation by Agent. In such event, Borrower shall promptly notify continue to pay interest at the Lenders, but the determination of the Applicable Margin shall not be dependent interest rate and on the giving of such notice. The applicable debt ratings Payment Dates in effect for the preceding quarter and the Applicable Margins are set forth parties shall adjust for the difference between interest payable and interest actually paid, when information to apply the performance grid is available. ============================================================================== Tier Consolidated LIBOR + Base Facility Funded Debt plus Rate Fee Indebtedness for Borrowed Money arising under the Agreement for Inventory Financing / EBITDA ------------- ---------------------- ---------------- -------- ------------ Tier I greater than 3.50x 112.5 bps* 0 bps 37.5 ------------- ---------------------- ---------------- -------- ------------ Tier II less than or equal 100.0 bps 0 bps 37.5 to 3.50x but greater than 3.25x ------------- ---------------------- ---------------- -------- ------------ Tier III less than or equal 87.5 bps 0 bps 37.5 to 3.25x but greater than 3.00x ------------- ---------------------- ---------------- -------- ------------ Tier IV less than or equal 75 bps 0 bps 37.5 to 3.00x but greater than 2.75x ------------- ---------------------- ---------------- -------- ------------ Tier V less than or equal 62.5 bps 0 bps 37.5 to 2.75x but greater than 2.50x ------------- ---------------------- ---------------- -------- ------------ Tier VI less than or equal 62.5 bps 0 bps 25 to 2.50x but greater than 2.25x ------------- ---------------------- ---------------- -------- ------------ Tier VII less than 2.25x 50.0 bps 0 bps 25 ============================================================================== * bps = basis points Notwithstanding anything contained in the following tables: --------------------------------------------------------------------------------------- Pricing Grid For Period From Closing Through First 4 Months --------------------------------------------------------------------------------------- Rating: At least At least Less than S&P and ▇▇▇▇▇'▇ Baa2 or BBB Baa3 or BBB- Baa3 and BBB- ("Level I Status") but lower than Level I Status --------------------------------------------------------------------------------------- ABR Applicable Margin 20 40 65 (in basis points) --------------------------------------------------------------------------------------- LIBOR Applicable Margin 120 140 165 (in basis points) --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- Pricing Grid For Period From Beginning of Month 5 Through Maturity --------------------------------------------------------------------------------------- Rating: At least At least Less than S&P and ▇▇▇▇▇'▇ Baa2 or BBB Baa3 or BBB- Baa3 and BBB- ("Level I Status") but lower than Level I Status --------------------------------------------------------------------------------------- ABR Applicable Margin 50 75 100 (in basis points) --------------------------------------------------------------------------------------- LIBOR Applicable Margin 150 175 200 (in basis points) --------------------------------------------------------------------------------------- In the event that either S&P or ▇▇▇▇▇'▇ shall discontinue its ratings of the REIT industry or Chateau Parent, Chateau Parent shall seek a debt rating from a substitute rating agency reasonably satisfactory this Agreement to the Administrative Agent and Chateau Parent (contrary, if at any time, or from time to time, Borrower is required to pay interest to IBM Credit Corporation pursuant to the "Substitute Rating Agency"). For Agreement for Inventory Financing, then, during such period that Borrower is required to pay such interest to IBM Credit Corporation, the period from rate of interest to be paid on all outstanding Loans hereunder will be equal to the date of such discontinuance until the first to occur greater of (i) the date Chateau Parent receives a debt rating from the Substitute Rating Agency or rate as determined pursuant to this Agreement, and (ii) a date 180 days after such discontinuance, the single rating from S&P or ▇▇▇▇▇'▇, as the case may be, shall be used to determine the Applicable Margin. If the debt rating of Chateau Parent from the Substitute Rating Agency is not received within such 180 day period, or if both S&P and ▇▇▇▇▇'▇ shall discontinue their ratings of the REIT industry or Chateau Parent at a time when Chateau Parent has not secured a rating from a Substitute Rating Agency, the Applicable Margin to be used for the calculation rate of interest on Advances hereunder shall be the highest Applicable Margin for each Type. If a rating agency downgrade or discontinuance results in an increase in the Applicable Margins and if such rating downgrade or discontinuance Borrower is reversed and the Applicable Margins are restored within ninety (90) days thereafter, at Borrower's request, Borrower shall receive a credit against interest next due the Lenders equal required to interest accrued from time to time during such period of downgrade or discontinuance on the Advances at the differential between such Applicable Margins. If a rating agency upgrade results in a decrease in the Applicable Margins and if such rating upgrade is reversed and the Applicable Margins are restored within ninety (90) days thereafter, Borrower shall pay at the time of the next interest payment (in addition to the interest then due) an amount equal to interest accrued from time to time during such period of upgrade on the Advances at the differential between such Applicable MarginsIBM Credit Corporation.

Applicable Margins. Both Each of the ABR Applicable Margin, the CD Applicable Margin and the LIBOR Applicable Margin to be used in calculating the interest rate applicable to different Types of Advances and the Facility Fee Rate to be used in calculating the Facility Fee shall vary from time to time in accordance with the higher of the then-Borrower's then applicable Moody's debt Mood▇'▇ ▇▇▇t rating and S&P's debt ratingrating unless one of such two ratings is more than one rating category lower than the other, as in which case the case may be, for average of the long-term unsecured debt two different Applicable Margins and the average of Chateau Parentthe two different Facility Fee Rates shall be used. The Applicable Margins shall be adjusted effective on the next Business Day following any change in Chateau ParentBorrower's Moody's debt Mood▇'▇ ▇▇▇t rating and/or S&P's debt rating, as the case may be. Borrower shall provide prompt notice to Administrative Agent of any rating change and promptly upon receipt of such notice Administrative Agent shall promptly notify the Lenders, but the determination of the Applicable Margin shall not be dependent on the giving of such notice. The applicable debt ratings and ratings, the Applicable Margins and Facility Fee Rate are set forth in the following tablestable: --------------------------------------------------------------------------------------- Pricing Grid For Period From Closing Through First 4 Months --------------------------------------------------------------------------------------- Rating: At least At least Less than ================================================================================================================================ LIBOR/CD ABR APPLICABLE APPLICABLE FACILITY S&P and RATING MOOD▇'▇ ▇▇▇▇▇'▇ ING MARGIN MARGIN FEE RATE -------------------------------------------------------------------------------------------------------------------------------- A- or higher A3 or higher 0.65% 0.00% 0.15% -------------------------------------------------------------------------------------------------------------------------------- BBB+ Baa1 0.75% 0.00% 0.15% -------------------------------------------------------------------------------------------------------------------------------- BBB Baa2 or BBB Baa3 or 0.85% 0.00% 0.15% -------------------------------------------------------------------------------------------------------------------------------- BBB- Baa3 and BBB- ("Level I Status") but lower than Level I Status --------------------------------------------------------------------------------------- ABR Applicable Margin 20 40 65 (in basis points) --------------------------------------------------------------------------------------- LIBOR Applicable Margin 120 140 165 (in basis points) --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- Pricing Grid For Period From Beginning of Month 5 Through Maturity --------------------------------------------------------------------------------------- Rating: At least At least 1.00% 0.00% 0.15% -------------------------------------------------------------------------------------------------------------------------------- Less than S&P and ▇▇▇▇▇'▇ Baa2 or BBB BBB- Less than Baa3 or BBB- Baa3 and BBB- ("Level I Status") but lower than Level I Status --------------------------------------------------------------------------------------- ABR Applicable Margin 50 75 100 (in basis points) --------------------------------------------------------------------------------------- LIBOR Applicable Margin 150 175 200 (in basis points) --------------------------------------------------------------------------------------- 1.15% 0.15% 0.25% ================================================================================================================================ In the event that either S&P or Mood▇'▇ ▇▇▇▇▇'▇ shall ll discontinue its their ratings of the REIT industry or Chateau Parentthe Borrower, Chateau Parent the Borrower shall seek a debt rating from a Fitch or Duff & Phel▇▇ ▇▇, if the Borrower so desires, another substitute rating agency reasonably satisfactory to the Administrative Agent and Chateau Parent (the "Substitute Rating Agency")Borrower. For the period from the date of such discontinuance until the first to occur of (i) the date Chateau Parent the Borrower receives a debt rating from the Substitute Rating Agency such new rating agency or (ii) a date 180 days after such discontinuance, the single rating from S&P or ▇▇▇▇Mood▇'▇, as ▇▇ the case may be, shall be used to determine the Applicable MarginMargin and the Facility Fee Rate. If the debt rating of Chateau Parent the Borrower from the Substitute Rating Agency such new rating agency is not received within such 180 day period, or if both S&P and Mood▇'▇ ▇▇▇▇▇'▇ shall ll discontinue their ratings of the REIT industry or Chateau Parent at a time when Chateau Parent has not secured a rating from a Substitute Rating Agencythe Borrower, the Applicable Margin to be used for the calculation of interest on Advances hereunder shall be the highest Applicable Margin for each TypeType and the Facility Fee to be used for the calculation of the Facility Fee shall be the highest rate shown above. If a rating agency downgrade or discontinuance results in an increase in the ABR Applicable Margins Margin, the CD Applicable Margin or the LIBOR Applicable Margin or in the Facility Fee Rate and if such rating downgrade or discontinuance increase is reversed and the affected Applicable Margins are Margin or Facility Fee Rate is restored within ninety (90) days thereafter, at Borrower's request, Borrower shall receive a credit against interest next due the Lenders equal to (i) interest accrued at the differential between such Applicable Margins plus (ii) the differential in the Facility Fees accruing from time to time during such period of downgrade or discontinuance on the Advances at the differential between such Applicable Margins. If a rating agency upgrade results in a decrease in the Applicable Margins and if such rating upgrade is reversed and the Applicable Margins are restored within ninety (90) days thereafter, Borrower shall pay at the time of the next interest payment (in addition to the interest then due) an amount equal to interest accrued from time to time during such period of upgrade on the Advances at the differential between such Applicable Marginsdiscontinuance.

Applicable Margins. Both On the ABR Closing Date, the Applicable Margin shall be determined using Tier I of the performance grid below until June 30, 1998. Thereafter, the Base Rate Applicable Margin and the LIBOR Applicable Margin shall be adjusted on the first day of each calendar quarter, beginning July 1, 1998, and on each October 1, January 1, April 1, and July 1, thereafter, based on the ratio of Consolidated Funded Debt plus Indebtedness for Borrowed Money arising under the Agreement for Inventory Financing and the Agreement for Wholesale Financing as of the end of the quarter ending on March 31, 1998, and on each June 30, September 30, December 31, and March 31, thereafter, to Consolidated EBITDA for the most recent preceding four (4) fiscal quarters, including the fiscal quarter ending on the date of determination. To the extent that, as of an adjustment date, Borrower has not provided to Agent information necessary to apply the performance grid, interest shall be used in calculating payable retroactively upon receipt of such information and calculation by Agent. In such event, Borrower shall continue to pay interest at the interest rate applicable and on the Payment Dates in effect for the preceding quarter and the parties shall adjust for the difference between interest payable and interest actually paid, when information to different Types of Advances shall vary apply the performance grid is available. ========================================================================================== Tier Consolidated Funded Debt LIBOR + Base Facility Fee plus Indebtedness for Rate Borrowed Money arising under the Agreement for Inventory Financing and the Agreement for Wholesale Financing/EBITDA ------------------------------------------------------------------------------------------ Tier I Greater than 3.50x 112.5 bps* 0 bps 37.5 ------------------------------------------------------------------------------------------ Tier II Less than or equal to 3.50x 100.0 bps 0 bps 37.5 but greater than 3.25x ------------------------------------------------------------------------------------------ Tier III Less than or equal to 3.25x 87.5 bps 0 bps 37.5 but greater than 3.00x ------------------------------------------------------------------------------------------ Tier IV Less than or equal to 3.00x 75 bps 0 bps 37.5 but greater than 2.75x ------------------------------------------------------------------------------------------ Tier V. Less than or equal to 2.75x 62.5 bps 0 bps 37.5 but greater than 2.50x ------------------------------------------------------------------------------------------ Tier VI Less than or equal to 2.50x 62.5 bps 0 bps 25 but greater than 2.25x ------------------------------------------------------------------------------------------ Tier VII Less than 2.25x 50.0 bps 0 bps 25 ========================================================================================== * bps = basis points Notwithstanding anything contained in this Agreement to the contrary, if at any time, or from time to time in accordance with time, Borrower is required to pay interest to IBM Credit Corporation pursuant to the higher of Agreement for Inventory Financing or DFS pursuant to the Agreement for Wholesale Financing, then-applicable Moody's debt rating and S&P's debt rating, during such period that Borrower is required to pay such interest to IBM Credit Corporation or DFS, as the case may be, for the long-term unsecured debt rate of Chateau Parent. The Applicable Margins shall interest to be adjusted effective paid on the next Business Day following any change in Chateau Parent's Moody's debt rating and/or S&P's debt rating, as the case may be. Borrower shall provide prompt notice to Administrative Agent of any rating change and promptly upon receipt of such notice Administrative Agent shall promptly notify the Lenders, but the determination of the Applicable Margin shall not all outstanding Loans hereunder will be dependent on the giving of such notice. The applicable debt ratings and the Applicable Margins are set forth in the following tables: --------------------------------------------------------------------------------------- Pricing Grid For Period From Closing Through First 4 Months --------------------------------------------------------------------------------------- Rating: At least At least Less than S&P and ▇▇▇▇▇'▇ Baa2 or BBB Baa3 or BBB- Baa3 and BBB- ("Level I Status") but lower than Level I Status --------------------------------------------------------------------------------------- ABR Applicable Margin 20 40 65 (in basis points) --------------------------------------------------------------------------------------- LIBOR Applicable Margin 120 140 165 (in basis points) --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- Pricing Grid For Period From Beginning of Month 5 Through Maturity --------------------------------------------------------------------------------------- Rating: At least At least Less than S&P and ▇▇▇▇▇'▇ Baa2 or BBB Baa3 or BBB- Baa3 and BBB- ("Level I Status") but lower than Level I Status --------------------------------------------------------------------------------------- ABR Applicable Margin 50 75 100 (in basis points) --------------------------------------------------------------------------------------- LIBOR Applicable Margin 150 175 200 (in basis points) --------------------------------------------------------------------------------------- In the event that either S&P or ▇▇▇▇▇'▇ shall discontinue its ratings of the REIT industry or Chateau Parent, Chateau Parent shall seek a debt rating from a substitute rating agency reasonably satisfactory equal to the Administrative Agent and Chateau Parent (the "Substitute Rating Agency"). For the period from the date of such discontinuance until the first to occur greater of (i) the date Chateau Parent receives a debt rating from the Substitute Rating Agency or rate as determined pursuant to this Agreement, and (ii) a date 180 days after such discontinuance, the single rating from S&P rate of interest the Borrower is required to pay IBM Credit Corporation or ▇▇▇▇▇'▇DFS, as the case may be, shall be used to determine the Applicable Margin. If the debt rating of Chateau Parent from the Substitute Rating Agency is not received within such 180 day period, or if both S&P and ▇▇▇▇▇'▇ shall discontinue their ratings of the REIT industry or Chateau Parent at a time when Chateau Parent has not secured a rating from a Substitute Rating Agency, the Applicable Margin to be used for the calculation of interest on Advances hereunder shall be the highest Applicable Margin for each Type. If a rating agency downgrade or discontinuance results in an increase in the Applicable Margins and if such rating downgrade or discontinuance is reversed and the Applicable Margins are restored within ninety (90) days thereafter, at Borrower's request, Borrower shall receive a credit against interest next due the Lenders equal to interest accrued from time to time during such period of downgrade or discontinuance on the Advances at the differential between such Applicable Margins. If a rating agency upgrade results in a decrease in the Applicable Margins and if such rating upgrade is reversed and the Applicable Margins are restored within ninety (90) days thereafter, Borrower shall pay at the time of the next interest payment (in addition to the interest then due) an amount equal to interest accrued from time to time during such period of upgrade on the Advances at the differential between such Applicable Marginsapplicable.

Applicable Margins. Both Each of the ABR Applicable Margin and the LIBOR Applicable Margin to be used in calculating the interest rate applicable to different Types of Advances shall vary from time to time in accordance with the higher of the thenBorrower's then applicable ▇▇▇▇▇'▇ long-applicable Moody's term unsecured debt rating and S&P's debt rating, as the case may be, for the long-term unsecured debt rating unless one of Chateau Parentsuch two ratings is more than one rating category lower than the other, in which case the average of the two different Applicable Margins shall be used. The Applicable Margins shall be adjusted effective on the next Business Day following any change in Chateau ParentBorrower's Moody's ▇▇▇▇▇'▇ long-term unsecured debt rating and/or S&P's long-term unsecured debt rating, as the case may be. Borrower shall provide prompt notice to Administrative Agent of any rating change and promptly upon receipt of such notice Administrative Agent shall promptly notify the Lenders, but the determination of the Applicable Margin shall not be dependent on the giving of such notice. The applicable debt ratings and the Applicable Margins are set forth in the following tablestable: --------------------------------------------------------------------------------------- Pricing Grid For Period From Closing Through First 4 Months --------------------------------------------------------------------------------------- Rating: At least At least Less than =============================================================== LIBOR ABR Applicable Applicable S&P and Rating ▇▇▇▇▇'▇ Rating Margin Margin ---------- -------------- ------ ------ A- or higher A3 or higher 0.75% 0.00% ------------------------------------------------------------- BBB+ Baa1 0.90% 0.00% --------------------------- --------------------------------- BBB Baa2 or BBB Baa3 or 1.00% 0.00% ------------------------------------------------------------- BBB- Baa3 and BBB- ("Level I Status") but lower than Level I Status --------------------------------------------------------------------------------------- ABR Applicable Margin 20 40 65 (in basis points) --------------------------------------------------------------------------------------- LIBOR Applicable Margin 120 140 165 (in basis points) --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- Pricing Grid For Period From Beginning of Month 5 Through Maturity --------------------------------------------------------------------------------------- Rating: At least At least 1.15% 0.15% ------------------------------------------------------------- Less than S&P and ▇▇▇▇▇'▇ Baa2 or BBB BBB- Less than Baa3 or BBB- Baa3 and BBB- ("Level I Status") but lower than Level I Status --------------------------------------------------------------------------------------- ABR Applicable Margin 50 75 100 (in basis points) --------------------------------------------------------------------------------------- LIBOR Applicable Margin 150 175 200 (in basis points) --------------------------------------------------------------------------------------- 1.50% 0.50% =============================================================== In the event that either S&P or ▇▇▇▇▇'▇ shall discontinue its their ratings of the REIT industry or Chateau Parentthe Borrower, Chateau Parent shall the Borrower may seek a long-term unsecured debt rating from a another substitute rating agency reasonably satisfactory to the Administrative Agent Arrangers and Chateau Parent (the "Substitute Rating Agency")Borrower. For the period from the date of such discontinuance until the first to occur of (i) the date Chateau Parent the Borrower receives a long-term unsecured debt rating from the Substitute Rating Agency such new rating agency or (ii) a date 180 days after such discontinuance, the single rating from S&P or ▇▇▇▇▇'▇, as the case may be, shall be used to determine the Applicable Margin. If the debt rating of Chateau Parent from the Substitute Rating Agency is not received within such 180 day period, or if both S&P and ▇▇▇▇▇'▇ shall discontinue their ratings of the REIT industry or Chateau Parent at a time when Chateau Parent has not secured a rating from a Substitute Rating Agency, the Applicable Margin to be used for the calculation of interest on Advances hereunder shall be the highest Applicable Margin for each Type. If a rating agency downgrade or discontinuance results in an increase in the Applicable Margins and if such rating downgrade or discontinuance is reversed and the Applicable Margins are restored within ninety (90) days thereafter, at Borrower's request, Borrower shall receive a credit against interest next due the Lenders equal to interest accrued from time to time during such period of downgrade or discontinuance on the Advances at the differential between such Applicable Margins. If a rating agency upgrade results in a decrease in the Applicable Margins and if such rating upgrade is reversed and the Applicable Margins are restored within ninety (90) days thereafter, Borrower shall pay at the time of the next interest payment (in addition to the interest then due) an amount equal to interest accrued from time to time during such period of upgrade on the Advances at the differential between such Applicable Margins.to

Applicable Margins. Both Each of the ABR Applicable Margin, the CD Applicable Margin and the LIBOR Applicable Margin to be used in calculating the interest rate applicable to different Types of Advances and the Facility Fee Rate to be used in calculating the Facility Fee shall vary from time to time in accordance with the higher of the then-Borrower's then applicable Moody's debt Mood▇'▇ ▇▇▇t rating and S&P's debt ratingrating unless one of such two ratings is more than one rating category lower than the other, as in which case the case may be, for average of the long-term unsecured debt two different Applicable Margins and the average of Chateau Parentthe two different Facility Fee Rates shall be used. The Applicable Margins shall be adjusted effective on the next Business Day following any change in Chateau ParentBorrower's Moody's debt Mood▇'▇ ▇▇▇t rating and/or S&P's debt rating, as the case may be. Borrower shall provide prompt notice to Administrative Agent of any rating change and promptly upon receipt of such notice Administrative Agent shall promptly notify the Lenders, but the determination of the Applicable Margin shall not be dependent on the giving of such notice. The applicable debt ratings and ratings, the Applicable Margins and Facility Fee Rate are set forth in the following tablestable: --------------------------------------------------------------------------------------- Pricing Grid For Period From Closing Through First 4 Months --------------------------------------------------------------------------------------- Rating: At least At least Less than =============================== ============================ ================== =================== ================ LIBOR/CD ABR APPLICABLE APPLICABLE FACILITY S&P and RATING MOOD▇'▇ ▇▇▇▇▇'▇ ING MARGIN MARGIN FEE RATE ------------------------------- ---------------------------- ------------------ ------------------- ---------------- A- or higher A3 or higher 0.65% 0.00% 0.15% ------------------------------- ---------------------------- ------------------ ------------------- ---------------- BBB+ Baa1 0.75% 0.00% 0.15% ------------------------------- ---------------------------- ------------------ ------------------- ---------------- BBB Baa2 or BBB Baa3 or 0.85% 0.00% 0.15% ------------------------------- ---------------------------- ------------------ ------------------- ---------------- BBB- Baa3 and BBB- ("Level I Status") but lower than Level I Status --------------------------------------------------------------------------------------- ABR Applicable Margin 20 40 65 (in basis points) --------------------------------------------------------------------------------------- LIBOR Applicable Margin 120 140 165 (in basis points) --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- Pricing Grid For Period From Beginning of Month 5 Through Maturity --------------------------------------------------------------------------------------- Rating: At least At least 1.00% 0.00% 0.15% ------------------------------- ---------------------------- ------------------ ------------------- ---------------- Less than S&P and ▇▇▇▇▇'▇ Baa2 or BBB BBB- Less than Baa3 or BBB- Baa3 and BBB- ("Level I Status") but lower than Level I Status --------------------------------------------------------------------------------------- ABR Applicable Margin 50 75 100 (in basis points) --------------------------------------------------------------------------------------- LIBOR Applicable Margin 150 175 200 (in basis points) --------------------------------------------------------------------------------------- 1.15% 0.15% 0.25% =============================== ============================ ================== =================== ================ In the event that either S&P or Mood▇'▇ ▇▇▇▇▇'▇ shall ll discontinue its their ratings of the REIT industry or Chateau Parentthe Borrower, Chateau Parent shall the Borrower may seek a debt rating from a another substitute rating agency reasonably satisfactory to the Administrative Agent and Chateau Parent (the "Substitute Rating Agency")Borrower. For the period from the date of such discontinuance until the first to occur of (i) the date Chateau Parent the Borrower receives a debt rating from the Substitute Rating Agency such new rating agency or (ii) a date 180 days after such discontinuance, the single rating from S&P or ▇▇▇▇Mood▇'▇, as ▇▇ the case may be, shall be used to determine the Applicable MarginMargin and the Facility Fee Rate. If the debt rating of Chateau Parent the Borrower from the Substitute Rating Agency such new rating agency is not received within such 180 day period, or if both S&P and Mood▇'▇ ▇▇▇▇▇'▇ shall ll discontinue their ratings of the REIT industry or Chateau Parent at a time when Chateau Parent has not secured a rating from a Substitute Rating Agencythe Borrower, the Applicable Margin to be used for the calculation of interest on Advances hereunder shall be the highest Applicable Margin for each TypeType and the Facility Fee to be used for the calculation of the Facility Fee shall be the highest rate shown above. If a rating agency downgrade or discontinuance results in an increase in the ABR Applicable Margins Margin, the CD Applicable Margin or the LIBOR Applicable Margin or in the Facility Fee Rate and if such rating downgrade or discontinuance increase is reversed and the affected Applicable Margins are Margin or Facility Fee Rate is restored within ninety (90) days thereafter, at Borrower's request, Borrower shall receive a credit against interest next due the Lenders equal to (i) interest accrued at the differential between such Applicable Margins plus (ii) the differential in the Facility Fees accruing from time to time during such period of downgrade or discontinuance on the Advances at the differential between such Applicable Margins. If a rating agency upgrade results in a decrease in the Applicable Margins and if such rating upgrade is reversed and the Applicable Margins are restored within ninety (90) days thereafter, Borrower shall pay at the time of the next interest payment (in addition to the interest then due) an amount equal to interest accrued from time to time during such period of upgrade on the Advances at the differential between such Applicable Marginsdiscontinuance.